The Eanes ISD board of trustees could adopt a new policy governing out-of-district student transfers by capping the percentage of transfers at each grade level by next school year.
The board reviewed four potential transfer student policies during the Oct. 20 board meeting.
Current situation
Despite adopting its 2026-27 budget in June with an $80,000 surplus, EISD is projected to face ongoing shortfalls and a declining fund balance in the coming years.
In September, the board approved a one-time staff payment for 2026-27, which is expected to push the fund balance below the district's 25% target.
Chief Academic Officer Kimberly Dewrell said EISD has historically used out-of-district student transfers as a strategy to support student enrollment and district finances. However, administration has been working through scenarios examining how these transfers impact finances, student enrollment, staffing, campuses and programs.
What are the options?
District administration presented four potential models to the board. Dewrell said the models were built utilizing current enrollment figures, as well as estimated state funding per student and staffing calculations.
EISD currently has 7,406 students enrolled, which includes 614 out-of-district transfer students and 272 students who are children of employees. In total, transfer students make up about 12% of EISD's enrollment.
Dewrell noted that reducing out-of-district transfers doesn't "automatically translate into financial savings," as seen in three of the four models.
Charge tuition for out-of-district transfer students
This option consists of out-of-district transfer students who want to stay in EISD—excluding students of employees—paying $20,000 in tuition.
Chief Financial Officer Pete Pape said per the Texas Education Code, districts can charge tuition based on what it spends per student, minus state funding.
This model assumes that $4 million in annual tuition would be generated if 200 out-of-district students remain, but would also reduce 21 teaching positions, netting $1.37 million in savings.
Under this model, EISD's fund balance could reach 28.3% by the end of the 2027-28 year.
"We want to remember that our families' willingness to pay the $20,000 annually is unknown; we want to make sure that we validate that assumption before relying on this model as a financial strategy," Dewrell said. "This does raise an important question about access and whether charging tuition impacts who can realistically participate in our transfer program."
Cap out-of-district transfer students to 7% at each grade level
Rather than eliminating the program entirely, this model would limit the percentage of transfer students at each grade level to 7%, including employee student transfers and students coded as out-of-district.
Assuming that 220 out-of-district students would remain and 18 teaching positions are reduced, this model "does not improve the district's projected financial position," Dewrell said.
This model would create a net negative budget impact of $1.17 million due to a $2.94 million reduction in revenue from losing 394 out-of-district students, offset by $1.17 million in staff reduction savings.
The board would ultimately need to determine if the 7% cap is a firm limit, a target or if it would allow exceptions for employee children, Dewrell said.
Eliminate out-of-district transfer students
This model would eliminate all 614 out-of-district students at the end of the current school year—excluding the 272 students of employees—along with the reduction of 27 teaching positions.
Dewrell noted that grandfathering would not be allowed, so this would include rising seniors and siblings having to leave.
This model would create a net negative budget impact of $2.82 million due to a $4.58 million reduction in out-of-district student revenue, offset by $1.76 million in staff reduction savings.
"This would be a significant change for students and families who have been a part of the district for years," Dewrell said.
The district would also have to establish a process to verify these students' enrollment in another district, Dewrell said. Without confirmation, these students could be classified as dropouts attributed to EISD, negatively impacting the district's dropout rate and accountability rating.
Phase out out-of-district transfer students
Rather than requiring all out-of-district transfer students to leave immediately at the end of the 2026-27 school year, this model would allow the students to complete their existing elementary, middle or high school level before transitioning out. This model also excludes students of employees.
Under this model, new transfer students would stop being accepted at the beginning of the 2027-28 school year. The current 614 out-of-district students would gradually exit over a period of several years. This model also includes the reduction of 24 teaching positions.
This model would create an eventual net negative budget impact of $3.02 million due to a $4.58 million reduction in out-of-district student revenue, offset by $1.56 million in staff reduction savings.
"This approach may provide more time for operational adjustments; it does not prevent the eventual loss of student transfer revenue," Dewrell said.
What happens next?
After hours of discussion, the board voted to continue to review the 7% out-of-district transfer enrollment cap at its next meeting on Nov. 17.
General Counsel Audra Shakra Hipp noted that this is only a first reading and is not yet a vote to implement the policy, as policy amendments can still be made at future meetings.
